Inflation and the silver lining for savers

So, latest figures show that inflation has risen for the
first time since October last year, pulling it out of negative territory and
meaning average prices are now just 0.1% higher than they were a year ago. This
slight increase has been welcomed by economists as it’s the highest inflation
level seen since January this year, marking a notable rise from last month’s
rate of -0.1%, and you can benefit…

All accounts will
beat it!

Not only can you take heart from the fact that the cost of
living isn’t rising too much – hopefully you’ll be feeling some of the benefits
– but as an added bonus, all you careful savers out there will be pleased to
know that every single savings account on the market pays a rate that will beat
it!

There are currently 872 accounts for you to choose from, and
of these, 681 are open to everyone (they’re not limited to high net worth
individuals or local residents, for example). This figure is made up of easy
access accounts, notice deals, fixed rate bonds and cash ISAs so there’s
something for all savings requirements, and all of them offer inflation-beating
rates.

Don’t get too
excited…

Sounds good, right? Well, yes, but unfortunately, it’s
probably too good to be true. We may be in an environment where it’s easier than
ever to secure real returns – for a bit of context, this time last year just
187 accounts on the market could beat inflation, and in June 2013 absolutely
none could do it – but that doesn’t mean the returns on offer are actually
decent. Bar some slight glimmers of hope in recent weeks, savings rates have
been on a general downwards spiral for years, and by all accounts, they aren’t
going to rise any time soon.

Our very own Rachel Springall, finance expert at Moneyfacts,
points out that the best easy access account on the market currently pays
1.50%, but three years ago you could easily get double that. “Today you would
need to fix for five years to get anywhere close,” she said, “and worse still, the
majority of providers are cutting rates. Since the start of June, only eight
providers raised rates on their savings deals, compared with 11 who reduced
them”.

Get more from your
money

OK, it isn’t sounding good, but we don’t want to be too
negative about the whole thing. The silver lining is this: thanks to inflation
being so low, the value of your savings won’t be eroded for the foreseeable
future, so it’s time to make the most of it! We know that you don’t just want
an account that can beat inflation, you want to smash it, so take a look at the
top-paying accounts across the market to see if you can benefit.